2. TOOLKIT GUIDE
MODULE ONE
Introduction 07
MODULE TWO
Using the toolkit 13
Mining and the host country 19
Annex 1: Example of a country profile (Guinea) 21
MODULE THREE
The participating mining operation and its economic and
MODULE FOUR
social initiatives and partners 27
Annex 2: Six priority partnership themes for socio-economic programs 33
Measuring the mining industry’s contribution to the host country 47
MODULE FIVE
The proximate aspects of governance that help or hinder mining’s
economic and social performance 57
Annex 3: Calculating and reporting tax payments 69
MODULE SIX
Measuring the participating mine’s positive and negative
contributions to local communities 75
Annex 4: Guidelines for field interviews 99
Annex 5: Notes on calculating employment impacts 103
MODULE SEVEN
Analyzing the life cycle impact of the participating mine on the
host country’s macroeconomic aggregates 111
Annex 6: Template for collecting life cycle data 121
MODULE EIGHT
Impact of mining on governance 125
Annex 7: Detailed questions to help assess the impact
of mining on governance 135
TOOLKIT ADDENDUM
Communicating your findings 143
TOOLKIT REFERENCES
Annex 8: Workshop design tool to present the country case study or
mining issues paper 149
Guiding principles regarding minerals taxation 157
Acronyms and glossary 167
Referenced sources 173
How was the toolkit developed? 177
The steering group 178
This toolkit has been developed
by the International Council on
Mining and Metals (ICMM). It is
the third version of a toolkit
originally published as the
Resource Endowment Toolkit
in April 2006 in collaboration
with UNCTAD and the World
Bank Group.
3. TOOLKIT
Toolkit CD
There are a number of worksheet and database
templates to help you complete each of the modules
in the toolkit. Wherever you see this symbol there is
a template available to help you complete the activity
described. All the templates are available on the
ICMM website at www.icmm.com/mpdtoolkit.
MINING: PARTNERSHIPS FOR DEVELOPMENT
CD versions of the toolkit are available on request
– email us at info@icmm.com.
4. “THE TOOLKIT FOCUSES ON SIX
THEMATIC AREAS WHERE
PREVIOUS WORK HAS INDICATED
THE POTENTIAL FOR PARTNERSHIPS
BETWEEN COMPANIES AND OTHER
STAKEHOLDERS TO ENHANCE THE
POSITIVE CONTRIBUTION AND
MINIMIZE NEGATIVE IMPACTS:
1. MINING AND POVERTY
REDUCTION
2. MINING AND ECONOMIC
DEVELOPMENT: REVENUE
MANAGEMENT
3. MINING AND ECONOMIC
DEVELOPMENT: REGIONAL
DEVELOPMENT PLANNING
4. MINING AND ECONOMIC
DEVELOPMENT: LOCAL CONTENT
5. MINING AND SOCIAL INVESTMENT
6. MINING AND DISPUTES
RESOLUTION.”
Image courtesy of Anglo American
6. “I WOULD LIKE TO COMMEND
THE INITIATIVE THAT LED
TO THIS SEMINAL STUDY
WHICH DEMONSTRATES
THAT NATURAL RESOURCE
ENDOWMENT, ECONOMIC
DEVELOPMENT AND SOCIAL
ADVANCEMENT CAN AND
SHOULD BE COMPLEMENTARY
CONCEPTS.”*
* Glodomiro Sanchez Mejia, Ex-Minister of Energy and Mines, Peru
Image courtesy of Xstrata
7. Introduction
The Mining: Partnerships for Development The toolkit provides a common analytical
Toolkit provides useful methodology for framework that helps to ensure that
evaluating the positive and negative comparisons can be made of mining’s
economic and social effects of mining at contributions and impacts across different
the local, regional and national levels in countries. It has been tested in five countries
mining countries. These methods will be since 2005 – Chile, Ghana, Peru, Tanzania
of relevance in particular to the increasing and the Lao PDR. ICMM is actively seeking
numbers of lower and middle income more countries to participate in future
economies that have high levels of mineral applications of the toolkit so that the
dependence. evidence base can be further extended.
It can be used by mining companies, mine
managers and any other organizations and
agencies that have an interest in the
relationship between mining and social
and economic development outcomes.
GUIDE
TOOLKIT
These will include host-country governments,
development agencies and development-
oriented non-governmental organizations
(NGOs). Experience has shown that
applications of the toolkit are more effective
if organized in partnership with both mining
companies and other stakeholders.
The application of the toolkit allows users
to develop an improved understanding of
what issues, policies and practices may be
helping or preventing host communities,
regions or the country from benefiting more
fully from mining. However, its use does
represent a significant commitment of time
and resources, and users are advised to
tailor their expectations of the likely benefits
to the level of resources that they are able
07
to commit.
Mining: Partnerships for Development TOOLKIT
8. Introduction
continued
About Mining: Partnerships for Development
ICMM’s Mining: Partnerships for Development initiative focuses on enhancing mining’s
economic and social contribution. It supports the formal commitment made by ICMM
member companies to actively support or help foster multi-stakeholder development-
focused partnerships in countries where they are active.
Mining is economically critical for millions of the world’s poorest people with some
50 countries being significantly dependent on mining. Yet mineral wealth does not
always mean positive economic growth – the so-called “resource curse” theory.
In 2004, ICMM began the Resource Endowment initiative in collaboration with UNCTAD
and the World Bank Group. It developed a substantial body of research on why some
countries have avoided the “resource curse” and developed practical recommendations
for companies, governments and civil society. It was overseen by an independent
international advisory group including the Head of the UN Global Compact and a former
Prime Minister of Senegal.
The Resource Endowment initiative showed that the “resource curse” is not inevitable.
Mining investments can drive economic growth and reduce poverty nationally and locally.
However, companies alone cannot unlock the development benefits from mining –
governance is key and multi-stakeholder partnerships can help fill capacity gaps.
The findings were based on the application of ICMM’s Resource Endowment Toolkit
(April 2006) in four countries – Chile, Ghana, Peru and Tanzania. The toolkit has been
TOOLKIT GUIDE
now been revised, extended and re-published as the Mining: Partnerships for
Development Toolkit.
The new version of the toolkit responds to a clear need in different parts of the world for
a more systematic and objective way to quantify and agree ways to enhance mining’s
economic and social contribution. It is currently being applied in a number of countries
and can be used by mine managers and those interested in promoting economic and
social development (host governments, development agencies and development-focused
NGOs).
08
For more information on how to participate in this work, visit www.icmm.com/mpd or
email us at info@icmm.com.
Mining: Partnerships for Development TOOLKIT
9. Introduction
continued
Guidelines for toolkit users The toolkit comprises a series of eight
modules and an addendum on taxation.
The toolkit is designed to be used on a It has been designed to be simple without
collaborative basis with a range of key placing an excessive demand on time or
stakeholders. Experience has shown that the cost, and, as far as possible, to be
insights gained and the potential subsequent implemented with in-country resources.
development of new partnership ideas are Some of the more technically complex
enhanced by a broad engagement with the methods of identifying “impact” (such as
work by other parties and especially local-level cost-benefit analysis) are
governments, local communities, development therefore not included.1
agencies and some specialized NGOs.
You will need to decide which modules to
The early applications of the toolkit have implement as part of the design process for
been led by mining companies. However, the your project (see Figure 1 ). The modules
lead can be taken by a party other than a can be implemented individually or in
mining company. In such cases, active combination but there are advantages in
engagement with some of the mine operations attempting as full an implementation as
in the country will be needed in order to gain your available resources allow.
access to the mine-specific data that is not
in the public domain. Each of the eight modules includes worked
examples or explanations of how to gather
The outcomes from implementing the toolkit the necessary data and analyze and present
will typically be a country case study and the findings. Most modules also include
one or more workshops to communicate annexes that provide specific details or
the findings of the country case study. further elaboration on some part of the
TOOLKIT GUIDE
Depending on your needs, you may not find process (e.g. guidelines for field interviews,
it necessary to develop an entire country how to measure employment impacts or
case study. how to organize a workshop).
09
1 For further guidance, see a Guide to Cost-Benefit
Analysis of Major Projects, available at
http://ec.europa.eu, and the DAC Guidelines and
Reference Series on Applying Strategic Environmental
Assessment, available at www.oecd.org.
Mining: Partnerships for Development TOOLKIT
10. MODULE ONE:
Figure 1: The eight modules of the toolkit
Mining and the host country
Preparing an overview of the country’s geography, population, settlement, land use,
economy and recent history with an emphasis on characteristics that influence or are
MODULE TWO:
influenced by the economic and social impact of mining: economic performance, political
stability, quality of governance, dependence on mining, and poverty and human development.
The participating mining operation and its economic and social initiatives and partners
Developing a profile of the participating mining operation(s) and the local communities in
MODULE THREE:
which they operate. This should include a profiling of any partnerships already set up by the
mining operation(s) for economic and social development across the six partnership themes.
Measuring the mining industry’s contribution to the host country
Understanding how the host country’s broad-based economic growth (of incomes, GDP,
MODULE FOUR:
exports etc) and social development have changed in the period during which mining has
assumed a significant relative importance.
The proximate aspects of governance that help or hinder mining’s economic and
social performance
Identifying elements of the host country’s quality of governance and macroeconomic
management that could affect the economic and social benefits of mining. The term
MODULE FIVE:
“proximate” is used to distinguish this from the more detailed probing on political economy
processes in module seven.
Measuring the participating mine’s positive and negative contributions to local communities
Measuring in detail the participating mine’s economic and social impacts (employment,
MODULE SIX:
procurement of locally supplied goods and services, training, social and infrastructure
provision, net impact) at the local level.
Analyzing the life cycle impact of the participating mine on the host country’s
macroeconomic aggregates
TOOLKIT GUIDE
Analyzing the participating mine’s contributions to GDP, government revenues, and balance
MODULE SEVEN:
of payments over the life cycle of the mine, looking forward to include the likely impacts of
future expected operations and well as those of the present and recent past.
Impact of mining on governance
MODULE EIGHT:
Examining the direct and indirect influence of mining on governance structures, institutions
and policy choices at different levels of government (national, regional and local).
10
Communicating your findings
TOOLKIT ADDENDUM:
Preparing the country case study (or mining sector issues paper) and encouraging
dissemination of and debate about its findings via a workshop.
Guiding principles regarding minerals taxation
Understanding the appropriate fiscal framework for mining including the importance of an
equitable allocation of rents and transparent reporting according to EITI standards and
engaging with governments to promote stable tax systems with minimal complexity.
Mining: Partnerships for Development TOOLKIT
11. Introduction
continued
Modules one to six can be implemented The toolkit is not a substitute for the
individually, as a set of two or more modules environmental and social impact studies
or in full and can be implemented in the that most mining companies undertake
order you choose. Module seven – whose before beginning a new mining
value relies on an understanding of what development.2 Neither does it seek to
has happened in the country over the period replace the often intensive consultation
since mining started – will be much more processes with stakeholders that are
informative if you have at least done module involved in carrying out such studies.
four and, ideally, modules two, three, five If, however, for your purposes these
and six as well. additional activities and methods are
required, then the studies can be
Module eight – Communicating your findings commissioned in parallel to implementing
– is the one module that should be applied the toolkit.
by all toolkit users. Implementing modules
one to seven will provide the evidence
needed to prepare a comprehensive country
case study. However, even if you only apply
a selection of modules, you should aim to
produce a shorter mining sector issues
paper.
The addendum to the toolkit looks
specifically at the issue of mineral taxation
because the fiscal stance towards mining is
so vital both to the sustainability of mining
TOOLKIT GUIDE
in any country and to its broader economic
and social development. That fiscal stance
is often contentious and not well understood.
In some circumstances, you may decide to
launch a specific study into the issue in
parallel with your work on the toolkit.
11
2 ICMM’s Good Practice Guidance for Mining and
Biodiversity (2006) provides tools and practical
considerations for assessing the environmental and
social impacts of mining on biodiversity, available
at www.icmm.com.
Mining: Partnerships for Development TOOLKIT
12. STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
Illustrative flow chart to set out key steps in using the toolkit – with exit criteria for each step
ASSESSMENT DESIGN PARTNERS PLAN COMMUNICATE
YOUR FINDINGS
Review Select modules Select partners Appoint project Workshop
pre-conditions management
team
Starts process
of elaborating
partnerships
Stakeholder Planning Establish Select modules Publish findings
and industry management and draft project
discussions arrangements scope
with partners
Decision Decision Decision
Pre-conditions point for design YES point for step point for step
met? step met? met? met?
YES YES YES
Address Address issues Address issues Address issues
NO NO NO NO
pre-conditions through reviewing through reviewing through revisiting
project design partnership project plan
arrangements
12 Mining: Partnerships for Development TOOLKIT
13. Using the toolkit
STEP 1: Assessment 3. Is there sufficient commitment in
government, among companies and other
Ask yourself the following questions before organizations in your country?
you decide to use the toolkit: The effective implementation of the toolkit
requires commitment – to data access and
1. Are there current issues in your country collection, to the subsequent dissemination
that the toolkit is suited to help you of the country case study or other findings,
understand? For example: and to frank discussions on conclusions
– Is there a preoccupation among and priorities for action across the six
stakeholders about narrow definitions of partnership themes. If this commitment is
“benefit sharing”? missing then you should probably focus
efforts first on building the necessary
– Does the discussion of tax revenues commitment.
dominate the agenda?
4. Are there adequate financial and
– Is there a sense that not enough jobs personnel resources to manage the
have been created or that traditional process and undertake the analysis
GUIDE
TOOLKIT
livelihoods have been damaged? in-country? A competent team of local
– Are there any potential opportunities to economic and financial analysts and
better integrate the mine into the survey specialists will be needed,
broader economy that are being missed? supplemented in all cases by assistance
from designated points of contact in the
– Are the needs of different stakeholders mining companies and other stakeholder
really understood and addressed? organizations. Additional external
If yes, then focus your scope on the assistance may be requested in some
corresponding modules of the toolkit. cases from ICMM and similar international
sources to help guide the early stage
2. Will the toolkit results have broad, rather design of the work and the presentation
than narrow application? For example, the of results. The services of a competent
toolkit is not equipped to quantify or political economist would also be of value
analyze problems of an environmental in most country cases.
nature; neither is it designed to add new
light on issues such as forced resettlement
or displaced livelihoods. These are
specialized areas, and appropriate
13
reference sources are provided. However,
where these issues have already been
subject to an economic or social impact
assessment, then the application of the
toolkit can certainly embrace the key
results from these.
Mining: Partnerships for Development TOOLKIT
14. Using the toolkit
continued
STEP 2: Design 3. Prepare an initial action plan for
disseminating the findings. This should
Follow these steps to determine the scope include some form of face-to-face
of work you want to accomplish via your use meetings with those other parties who
of the toolkit: would ideally be involved in helping you to
assemble the necessary information or
1. Determine what you want to accomplish who would be likely to be interested in
with the findings of the toolkit work and the findings.
how they will be used and select modules
accordingly. If you are only looking for a
narrow set of specific insights – e.g. about
the use of mineral revenues or about local
employment - then you need work only
with a selection of the eight modules.
2. Try to involve more than one mine in the
process, as that will provide more
information sources for the required
mine-specific data and allow differences
between mines to be identified and
assessed. While the toolkit can be applied
to just one mine, the value of
implementing the toolkit increases with
the number of mines involved.
The involvement of multiple mines clearly
TOOLKIT GUIDE
means that the evidence base created will
be much more representative of the
industry as a whole and less likely to
suffer from any biases associated with
using just a single mine. The buy-in of
senior management from participating
mining companies, and where possible
any chamber of mines (national and/or
regional mining association), is therefore
essential to ensure co-operation both with
14
other mines and with any independent
research organization that is commissioned
to implement the toolkit. Thus, in most
cases where the toolkit uses the term “a
mine”, “a mining company”, or “a mining
project”, the term is intended to encompass
the plural as well as the singular.
Mining: Partnerships for Development TOOLKIT
15. Using the toolkit
continued
STEP 3: Partners STEP 4: Plan
Based on your goal(s), identify one or more Follow these steps to develop a project plan:
partners with whom you would like to work.
1. Appoint a project management team with
If you represent a mining company, you
representatives from each partner
might choose to work closely with key
organization. Agree on a governance system
departments of the government or with an
for the partnership and how to allocate
NGO or an international donor that is likely
roles and responsibilities for the work.
to have a shared interest in your chosen
goals. If you represent an NGO or government 2. Decide which modules will or can be
department, you will need at least one implemented in-house and which will or
mining company to work with you, because may require a contract with an external
much of the required data to fully implement research organization. Different modules
the toolkit is available only from the can be delegated to different individuals
corporate data files. Partners need to have in your team. Much of the toolkit research
some shared common objectives but they is desk-based, but consultations with
need not be in full agreement about the key communities and meetings with providers
hypotheses that they expect the toolkit to of data (particularly data from the
verify. To the extent possible all partners participating mining operations) will also
should engage in the work with open minds be required, particularly in carrying out
and allow the evidence as it accumulates to modules five and six. There is guidance
tell its own story. within each module to help you decide
the best course of action.
Hold an early meeting (or meetings) or
3. Write a brief that covers the scope of work
workshop(s) with your chosen partner(s) to
TOOLKIT GUIDE
for each module including reference to
agree on the goals and the methods for
the modules you wish to implement via a
conducting the work and to review the toolkit
contract with third party organizations.
scope of work. This may require expanding
The brief should reference the complete
or contracting the original goal, but keep it
toolkit.
focused on the modules of the toolkit.
4. For the sake of credibility and value, you
should adopt an objective and broad
perspective on the scope of the investigation,
the questions to be asked of interviewees
15
and the representation of their views.
5. Select a research organization(s) with the
interests, skills and capacity to implement
the required toolkit modules that cannot
be done in-house in a credible and
unbiased manner. Seek advice from ICMM
if you have questions on this matter.
Mining: Partnerships for Development TOOLKIT
16. Using the toolkit
continued
6. Identify supplementary data sources for STEP 5: Communicate your findings
your research. The toolkit relies fairly
heavily on data from mining companies’ The five country case studies to date have
operations, but it also explains how to shown that workshops are far better than
combine these with and interpret data remote methods (such as printed reports or
from public sources, such as the web sites) for disseminating toolkit findings,
International Monetary Fund (IMF), the encouraging debate, and engaging partners.
United Nations Development Programme However, the printed reports or web sites
(UNDP), and the World Bank, as well as do provide a valuable complementary
from the mining industry itself. Non-mining resource in all cases. For both workshops
sources will cover a range of issues, such and written reports, it is important to avoid
as revenue payments to governments, overly technical language so that a wide
governance, and household poverty. audience can understand the main aspects
The toolkit seeks a balanced approach of the debates.
tp data collection by ensuring that
assessments can be undertaken even You are encouraged to use workshops and
when the available economic and social to seek attendance by as many relevant
data cannot support more sophisticated business, government and civil society
quantitative analysis. stakeholders as are able or willing to take
7. Decide on the type of written output you part. Workshops can add diversity of opinion
plan to produce and plan the inputs and (and balance of views), encourage the
instructions to researchers accordingly. shared ownership of non-contentious
For example, if you have decided to write information (and give focus to debate) and
a full country case study, you will need promote an understanding of mutual
a report that can bring together the interests (and motivate prospective partners
TOOLKIT GUIDE
evidence from modules one to seven to action). However, they do add greatly to
inclusive. The information and analysis the time and costs of preparation, especially
wherever possible should be organized in cases where some important stakeholders
around the six partnership themes. may show resistance to participation and
need to be encouraged to do so.
8. Whether in a workshop, in your written
country case study report, or in a shorter
mining issues paper, try at an early stage
to identify key issues. For example, your
16
evidence base should normally establish the
rationale for partnerships based on one or
more of the six partnership themes. But the
details of how such partnerships might be
formed – and what their scope would be –
will need to be developed through the
research activity.
Mining: Partnerships for Development TOOLKIT
17. ONE
MODULE
Mining and the
host country
ANNEX 1
Example of a country
profile (Guinea)
18. “POLITICS, ECONOMICS, AND
GOVERNANCE ARE ALL
LIKELY TO HAVE A BEARING
ON THE CONDUCT OF THE
MINING PROJECT AND ITS
ECONOMIC AND SOCIAL
CONTRIBUTION.”
Image from ICMM
19. Mining and the
host country
Purpose Gathering the data
Module one sets the country context for Set the context with a brief description of the
the benefit of subsequent modules of the host country’s geography, physiography,
toolkit. It provides an overview of the broad climatic and vegetation zones, and
characteristics of the host country that natural resources; population, settlement
might illustrate how the political economy and land use; demographics (population,
has evolved to the present day and how ethnicity, education, health); economy,
that, in turn, may influence or be influenced politics, recent history, bordering countries
by mining. and geopolitical context. Address these
general characteristics to the extent
The overview will provide an insight into necessary to set the mining industry in
the host country’s economy, governance context, with your focus on the main
and current issues and may reveal new characteristics that influence or are
partnership opportunities, all of which will influenced by the economic and social
be useful in other modules in this toolkit. impacts of mining, including:
ONE
MODULE
Whether you are planning to write a
• the economic base: land, water, living and
country case study or shorter report that
mineral resources;
draws on only a few of the modules, you
will probably want to write some background • economic performance (past and present);
material to set the context. Module one
• mining past and present in the country
provides the framework for organizing
and its environmental, economic and
this information.
social impacts;
• quality of governance;3
• political stability; and
• poverty and human development, including
human rights.
These characteristics will or could have a
bearing on how mines are planned, built,
operated and judged.
19
3 “Governance consists of the traditions and
institutions by which authority in a country is
exercised. This includes the process by which
governments are selected, monitored and replaced;
the capacity of the government to effectively
formulate and implement sound policies; and the
respect of citizens and the state for the institutions
that govern economic and social interactions
among them.” (Source:
http://info.worldbank.org/governance/wgi/index.asp.)
Mining: Partnerships for Development TOOLKIT
20. Mining and the
host country
continued
Data sources might include: You may also elect to pursue themes
uncovered from these broad sources
• BBC News country profiles
(e.g., gender politics and activism) through
How to present your findings
other sources, such as the national press
of the host country.
• US Central Intelligence Agency World
(http://news.bbc.co.uk/2/hi/country_profiles/
Factbook
default.stm);
(www.cia.gov/library/publications/the-world-
factbook); Module one should present a discursive
• IMF Staff Reports under Article IV country description of two to three pages.
(www.imf.org); Differences between countries preclude
the definition of any standard pro-forma
• World Bank’s Country Briefs available structure, so you should exercise your
under “Highlights” on each country’s page country knowledge and judgment.
(www.worldbank.org/countries);
• World Bank’s aggregate and individual Annex 1 provides an example. The four
governance indicators for six dimensions country case studies prepared under the
of governance ICMM’s Resource Endowment initiative
(http://info.worldbank.org/governance/wgi/ provide further, more complete examples
index.asp); of module one content and structure.4
• United Nations Development Programme’s
Human Development Report statistics,
including the human development index
(http://hdr.undp.org/en/statistics);
MODULE ONE
• Bertelmann Foundation’s Country Reports
(www.bertelsmann-transformation-
index.de/en/bti/country-reports);
• World Health Organization’s country
profiles for countries that are members of
the United Nations
(www.who.int/countries/en);
• United Nations Statistics Division of the
20
Department of Economic and Social Affairs
country profiles
(http://data.un.org/CountryProfile.aspx); and
• Organisation for Economic Co-operation
and Development information by country
or topic under “Browse” (www.oecd.org).
4 www.icmm.com/page/1409/resource-endowment-
initiative.
Mining: Partnerships for Development TOOLKIT
21. 1
Example of a country
profile (Guinea)
Example description of country context (Guinea)
Environment, resources, land use and settlement
At 245,800 km2, Guinea is roughly the size of the United Kingdom and slightly smaller
than the U.S. state of Oregon. There are 300 km of coastline and a total land border of
3,400 km. Its neighbours are Côte d’Ivoire (Ivory Coast), Guinea-Bissau, Liberia, Mali,
Senegal and Sierra Leone. The country is divided into four main regions: the Basse-Coté
lowlands, populated mainly by the Susu ethnic group; the cooler, mountainous Fouta
Djallon that runs roughly north–south through the middle of the country, populated by
Peuls; the Sahelian Haute-Guinea to the northeast, populated by Malinké; and the
forested jungle regions in the southeast, with several ethnic groups.
Upper Guinea and Middle Guinea remain the country’s poorest regions. This situation is
the direct result of the influx of refugees received since the outbreak of hostilities in
Liberia and in Sierra Leone, as well as the rebel attacks in 2001. This has damaged the
ANNEX
environment, destroyed considerable socio-economic infrastructure and caused enormous
losses in household assets (livestock and plantations). In addition, industrial and toxic
solid waste (biologically contaminated waste from hospitals, laboratories, slaughterhouses
and mining enclaves) is generally thrown into the natural environment, watercourses or
the sea, receiving the same treatment as other waste.5
Guinea has abundant natural resources, including 25% or more of the world’s known
bauxite reserves. Guinea also has diamonds, gold, and other metals. Bauxite and alumina
are currently the only major exports. Other industries include processing plants for beer,
juices, soft drinks and tobacco. Agriculture employs 80% of the nation’s labour force.
continued
21
5 International Monetary Fund, January 2008,
IMF Country Report No. 08/7.
Mining: Partnerships for Development TOOLKIT
22. Example of a country
profile (Guinea)
continued
Economic performance (past and present)
Guinea is a low-income country of huge mineral wealth. However, the per-capita GDP
in 2010 of US$395 (current prices) compares poorly even with the sub-Saharan African
average. In 2007 Guinea ranked 170 out of 182 countries on the UNDP 2007/08 human
development index (HDI).6 Growth rose slightly in 2006-08, primarily due to increases in
global demand and commodity prices on world markets, but the standard of living fell.
The Guinea franc depreciated sharply as the prices for basic necessities like food and
fuel rose beyond the reach of many Guineans.7
Quality of governance
From 1996 to 2007, Guinea scored low on all six measurable dimensions of governance
in both absolute terms and relative to the averages set by sub-Saharan Africa.8 Poor
governance provides one explanation for poor growth, and the 2008 Country Report of
the Bertelsmann Foundation found a number of specific factors to support this view.9
Political stability
The Guinea economy has performed poorly after independence from France in 1954.
The macroeconomic problems following the early Sekou-Toure years lingered
uncorrected by only lacklustre structural adjustment in the mid-1980s and early 1990s;
and civil unrest was quite common, even at that stage. By 2006, worsening economic
performance and stalled reforms led to more general strikes; and these, in turn, led
eventually to the new Government of Consensus in March 2007 headed by Prime Minister
ANNEX 1
Lansana Kouyaté. This promised much; but in May 2008, the new Prime Minister was
dismissed by the President, Lansana Conté. Further military and civil unrest has since
ensued around various issues, including a large hike in petroleum prices.10
continued
22
6 UNDP Human Development Report (2009). 9 Bertelsmann Stiftung, BTI 2010 — Guinea Country
Report. Gütersloh: Bertelsmann Stiftung, 2009.
7 The CIA World Factbook, Guinea, retrieved
28 October 2010. 10 International Monetary Fund, January 2008,
IMF Country Report No. 08/7.
8 Worldwide Governance Indicators project
(http://info.worldbank.org/governance/wgi/index.asp).
Mining: Partnerships for Development TOOLKIT
23. Example of a country
profile (Guinea)
continued
Mining past and present
Mineral production, particularly of bauxite and alumina, has been central to Guinea’s
economic development since independence. The UNCTAD 2007 World Investment Report
shows Guinea’s economy to be the most mining dependent in the world, with an average
ratio of mineral to total exports of 89.8% over the period 2000 to 2004.11 This dependence
is the more remarkable because the growth of the mining sector in the overall economy
has in fact been slower than the growth of overall GDP: the IMF Selected Issues Paper
(January 2008) estimates that the GDP share of minerals fell from 85% of the total in the
early 1990s to less than 70% by the period 2002 to 2005.12
The mining industry is playing an important role in the socio-economic development of
the country. Mining is the most important export commodity and source of revenues for
the Government, and agreements signed recently are likely to involve billions of dollars
and consolidate the sector’s position as the main source of foreign direct investment.13
Relative to the country’s very low base, the regions least affected by poverty in Guinea
are those where new mines and mineral transport and processing infrastructure are
proposed or are being built. This may reflect the positive effects of earlier phases of
mineral production in these locations. These regions have at least relatively better
economic infrastructure and basic social service facilities and are relatively well endowed
with natural resources. They are also quite close to the capital with its comparatively
better educated and trained population.
ANNEX 1
continued
23
11 World Investment Report 2007 13 Community Development Framework Study for the
(www.unctad.org/en/docs/wir2007_en.pdf). Mining Sector in the Republic of Guinea, (2007).
12 Guinea: Selected Issues and Statistical Appendix,
IMF Country Report No. 08/20
(www.imf.org/external/pubs/ft/scr/2008/cr0820.pdf).
Mining: Partnerships for Development TOOLKIT
24. Example of a country
profile (Guinea)
continued
Poverty and human development
According to the UN Human Development Report (2006), 40% of the population live
below the income poverty line. In 2008 the population was estimated at 10.28 million
and expected to increase to more than 11 million during 2011.
After the implementation of the economic and structural reforms of 2003–06 veered off
course, with a resultant drop in income of 0.6% per head, the economic slump was
aggravated by the global financial crisis in 2007. Inflation rose to more than 22%, along
with a depreciation of the currency of 18%. This was followed by deterioration in living
standards, reflected in a rise in the poverty rate from 49% in 2002/03 to 53% in 2007/08.
In the face of these difficulties, Guinea launched reforms in 2007 under its second
Poverty Reduction Strategy Paper (PRSP 2), supported by the Poverty Reduction and
Growth Facility (PRGF) of the International Monetary Fund (IMF) and the intervention of
other technical and financial partners. The reforms bore fruit in 2008, despite a difficult
international context; and public and private investment rose by 14%. As a result,
economic growth accelerated from 1.8% in 2007 to 4.9% in 2008, driven by the
improvement in the terms of trade resulting from the surge in mineral raw material
prices and the fall in the price of oil.14 However, a reduction in the proportion of people
living below the income poverty line has yet to be seen.
ANNEX 1
24
14 African Economic Outlook: see
www.africaneconomicoutlook.org/en/countries/west-africa/guinea/.
Mining: Partnerships for Development TOOLKIT
25. TWO
MODULE
The participating
mining operation
and its economic
and social initiatives
and partners
ANNEX 2
Six priority partnership
themes for socio-economic
programs
26. “THE SIX THEMES CONSTITUTE
A BROADLY APPLICABLE
CATEGORIZATION OF MINING’S
ECONOMIC AND SOCIAL
CONTRIBUTION.”
Image courtesy of Newmont
27. The participating mining
operation and its
economic and social
initiatives and partners
Purpose Gathering the data
Module two provides a profile of the Module two requires two separate data-
participating mining operation,15 of the gathering steps:
main partnerships set up by the mining
• Step 1: profile of the participating mining
operation to bring economic and social
operation and local communities; and
development, and of the main initiatives
undertaken to date. • Step 2: overview of the economic and
social performance of the participating
mining operation and its partnership
arrangements and initiatives across the
six priority partnership themes.
STEP 1: Profile of the participating mining
operation and local communities
First, gather sufficient data to provide a
TWO
MODULE
brief, non-technical description of ownership,
financing, investments, production levels,
and environmental footprint of the mining
operation. This is essentially the information
on which the mining company has relied in
its internal management decisions about
project strategy, scope, design and operations.
Much of this information will also have
informed the decisions of regulators and
financiers; and their respective roles in, and
influence on the scope of, the project would
be informative if available. The relevant
documents will normally be available from
a company’s finance and environmental
departments, annual report or website.
Aim to describe each mining operation and
set its scale and scope in the host-country
27
context. Issues to cover will typically include:
• ownership structure, including minority
partners;
• physical location, including the area
occupied by the mine and related
infrastructure (such as a railroad or port)
and its previous use;
15 As discussed in “Using the toolkit”, participation
by more than one mining operation in the
implementation of the toolkit is strongly encouraged.
However, for simplicity in presentation, the toolkit
assumes just one mine, mining operation, or mining
company is involved.
Mining: Partnerships for Development TOOLKIT
28. The participating mining
operation and its
economic and social
initiatives and partners
continued
• development milestones, ore reserves, on changes in the communities since mining
identified resources and projected mine started in the area would be helpful, although
life, regional mineralization, exploration this information may be difficult to find.
potential and programs, and further
development potential and factors; National census statistics may be able to
provide some basic information, such as
• production, markets and customers;
population size in the communities or the
• mining and waste management: open pit main economic activities in the region.
or underground, environmental properties Any previous fieldwork and qualitative or
of mine materials, water balance and waste quantitative research work conducted in
management strategy, specific mine waste the area will also be helpful. If no other
and tailing management arrangements, information is available, the community
and zone of direct environmental impact; section will need to rely on information from
reports produced by the mining company.
• actual capital investments to date or
For example, social impact assessments,
planned and the likely level of the
participation agreements, community
“staying-in-business” investments,
development plans or community
including local and regional exploration to
engagement plans.
extend existing deposits or find new ones;
• similar information for other local mines Information on the affected communities
(i.e., in the broad region of the mine under should typically include:
study); and
• the number of villages or towns in the
• recent or planned mine closures in that area, their proximity to the mine and the
same area or nationally. size of their populations;
MODULE TWO
• the languages spoken by communities,
Second, gather information on the
the main ethnic groups present (including
communities directly (and indirectly) affected
whether there are any tensions between
by the operations of the mine. These will be
groups), major cultural characteristics
either villages or towns near the mine or
that may impact upon the way the
those along the main supply routes as these
communities interact with the mines
are most likely to be positively or negatively
activities (e.g., nomadic lifestyles may
affected by the mine’s activities. The aim is
mean that there are more disputes over
to get an idea of the number, size and
the use of land in the area);
proximity of villages in the area, as well as
28
the key characteristics of those living in • the level and quality of infrastructure
these communities.16 If possible, information and services in the area (is the area
relatively more or less well-serviced than
other areas in the country?);
• poverty, unemployment levels and literacy
levels of communities (if significantly
different from the rest of the country); and
16 You may want to draw comparisons with the
situation in the rest of the country; i.e., is there an
evidence base for saying whether the communities
in the mining area are ethnographically different,
relatively better off, or more economically or
socially deprived than the rest of the country?
Mining: Partnerships for Development TOOLKIT
29. The participating mining
operation and its
economic and social
initiatives and partners
continued
• the main economic activities of those living information about the economic and social
in the communities (including an outline of partnerships the mining operation has
any artisanal mining activities in the area), established with government (local, regional
information on how many people in the or national), other mining operations or
local community are dependent on mining companies, donor organizations, non-
activities for their livelihoods (and, if the government organizations, community
data already exists, an outline of any organizations, and local communities.
changes in economic activity since the
commencement of mining in the area). Gather information to describe the policies,
programs, and management and monitoring
STEP 2: Overview of economic and social arrangements established by the mining
performance of the participating mining operation to enhance the positive and
operation across the six priority mitigate the negative economic and social
partnership themes impacts of its project.18 Source documents
Step 2 describes the current activities and will include project social impact
assesses the performance of the assessment reports, community
participating mining operation across the development agreements, and social and
six priority partnership themes that the environmental monitoring reports. These
pilot applications of the toolkit have shown will be available from the mining operation’s
to cover the principal parameters of external relations or community relations
economic and social development:17 team. Wherever possible, you should
reference relevant pre-project baseline
1. mining and poverty reduction;
data and any targets that have been set
2. mining and economic development: unilaterally or in agreement with the
revenue management; authorities. Other data sources include
MODULE TWO
local-level social reports and other public
3. mining and economic development:
reports on the initiatives of the mining
regional development planning;
operation and its partners. A starting point
4. mining and economic development: local
content;
5. mining and social investment; and
6. mining and disputes resolution.
29
17 The ICMM’s Resource Endowment initiative identified
These six themes are described in Annex 2.
six priority partnership themes (based on experience
in Chile, Ghana, Peru and Tanzania), where
partnerships between companies and others may
A mining operation’s net positive
help to enhance positive socio-economic outcomes
contribution to the six themes will, for the
and minimize adverse outcomes from mining.
Experience has demonstrated that the six themes
most part, require multiple partnerships
constitute a broadly applicable categorization of
between different mining companies and
mining’s economic and social contribution; and,
between mining companies and other
where possible, you are encouraged to organize
findings using these themes.
organizations. Thus, Step 2 also develops
18 For further information on how resolving local-level
concerns and grievances can mitigate negative
socio-economic impacts, see ICMM’s publication
Human Rights in the Mining & Metals Industry:
Handling and Resolving Local Level Concerns and
Grievances, October 2009, available at
www.icmm.com.
Mining: Partnerships for Development TOOLKIT
30. The participating mining
operation and its
economic and social
initiatives and partners
continued
should be the project’s community ICMM’s Mapping in-country partnerships,
development agreement (if one exists).19 which describes a range of past and current
partnership initiatives and organizes them
An initial list of partnerships can be derived under the six themes.20
from the participating mine and its partners’
websites and social reports. These sources When identifying and describing partnerships,
may list but not explain partnerships that it will be the specific social or community
have since failed; however, it is important to development initiatives that first come to
determine why the failure has occurred and mind, such as malaria eradication, HIV/AIDS
to include the reason in the description of programs or support for local schools.
the failed partnership. Published sources Important as they are, however, they
may not have the answers, and the question constitute just one element of a much
may need to be pursued in interviews with broader contribution, which many people,
stakeholders in module five, Step 1 (or now including those within the mining company,
during module two if you feel that the issue often do not appreciate fully.21
warrants immediate attention).
In other words, it will always be the case
As well, the views, and especially the critical that the main economic and social
views, of both partners and communities contributions of mining companies will
should be sought and included. Any emerge from their core business processes.
independent evaluations of any programs These processes should not be difficult to
would provide particularly relevant evidence. describe: paying taxes; employing people;
If documentary evidence is not available, procuring goods and services; skills
then, as above, you will need to decide development; contributing to infrastructure
whether to leave interviews to module five development;22 and implementing
MODULE TWO
or to undertake sufficient interviews now environment, health and safety programs.23
to flesh out your module two data.
The information should be broadly pursued
and organized under the six partnership
themes. Mining companies and partnership
organizations will typically define, manage
and communicate their economic and social
20 Mapping in-country partnerships, ICMM, February
impacts in their own terms. Therefore, you
30
2010, available at www.icmm.com.
will need to translate their programs and
21 See Strategic Community Investments: A Quick Guide
policies into a common understanding of
(2010) produced by the International Finance
these six themes. For further guidance, see
Corporation and available on the CommDev website
(http://commdev.org).
22 Infrastructure (such as roads, water supplies or
power supplies) that has been developed by large
mines can make important economic and social
contributions, depending on the degree to which the
infrastructure also meets the needs of and is made
available to communities.
23 ICMM’s Good Practice Guidance on Health Impact
19 To understand the issues, challenges and Assessment (2010), which sets out an overview of
approaches to community development in the how mining and metals operations can affect the
mining sector, see Community Development health and wellbeing of local communities and
Framework Study for the Mining Sector in the describes typical health impact assessment
Republic of Guinea, available at http://commdev.org. processes, is available at www.icmm.com.
Mining: Partnerships for Development TOOLKIT
31. The participating mining
operation and its
economic and social
initiatives and partners
continued
For module two, therefore, be mindful of the How to present your findings
participating mine’s incidental, but often very
substantial, positive influence via the implicit For Step 1 (the description of the mining
partnerships that are to be found in day-to- operation and local communities), the aim is
day commercial arrangements between the to describe the mine and local communities
mine and local organizations. for a broad, non-technical audience. Numerical
information – for example, ore reserves,
This module of the toolkit does not require production and mine life or statistics about
you to make value judgments about a the communities – can be inserted selectively
company’s future priorities: focus instead on into an otherwise generally discursive narrative
an analysis of the success of current efforts about the mine and the affected communities.
in terms of the six themes.
For Step 2 (overview of economic and social
Box 2.1, The Role (and Challenges) of performance), provide the mining operation’s
Partnerships in the Economic and Social own view of its overall contribution to
Contribution of Mining, is based on recent economic and social development and how
ICMM research24 and discusses the potential this fits with the work of other organizations
value of partnerships in the mining sector. within and beyond government.
The economic and social contributions of
mining operations arising from core business
processes (such as paying tax and employing
people) should be described in broad terms;
they will be quantified in module five.
MODULE TWO
Provide narrative descriptions of any existing
partnerships across the six priority partnership
themes. Your resources may limit you to a
simple listing and brief profiles of initiatives
and partnerships. However, the application
of the toolkit in Ghana has shown it to be
worthwhile, if time and resources permit, to
go a step further and develop a partnership
database, which can be maintained and
31
gradually updated over time. The database
could be structured as indicated by the example
partnership database in Annex 2, an
interactive form of which is provided on the
CD included with the toolkit. These same
data – whether organized into a formal
database or not – can be referred to in later
modules, especially in module five.
24 Mapping in-country partnerships, ICMM, February
2010, available at www.icmm.com.
Mining: Partnerships for Development TOOLKIT
32. The participating mining
operation and its
economic and social
initiatives and partners
continued
Box 2.1 The role (and challenges) of partnerships in the economic and social
contribution of mining
Mining companies are typically involved in a range of in-country partnerships. Modern
mines are often located in remote, poorly governed areas; and partnerships are one way
to stop a company’s social programs from drifting into roles and responsibilities more
typically found with government. Indeed, partnerships can go further and strengthen
the capacity of existing social and government institutions to carry out these functions.
In similar vein, mining companies’ participation in partnerships allows them to maximize
their indirect economic and social contributions in situations in which it would be difficult,
or even inappropriate, for a company to undertake the work alone. For example,
partnerships reviewed for the ICMM report Mapping in-country partnerships included
collaborating with the World Bank and the government of Madagascar on the development
of port facilities, creating collaborative local and regional development planning structures
in Latin America, resolving long-standing disputes in Colombia, building community
health centers in South Africa, and even improving fishing livelihoods in Indonesia.
Notwithstanding these examples, ICMM’s partnership research has also thrown up two
constraints on their broader uptake in the mining sector.
The first is a lack of awareness of the potential benefits, and this issue is well illustrated
by the difficulty of assessing the impacts of partnership. In other words, without
understanding exactly how the quality of life has improved in a target community, how
can a partnership claim to be effective? Making this assessment is not easy when data
MODULE TWO
and analysis do not exist. It is precisely for this reason that we anticipate greater use
of the toolkit and wider adoption of new metrics that look beyond the traditional
categories of wealth or employment creation. A recent “business and development”
seminar – organized by Business Action for Africa, the UK Department for International
Development, and the Overseas Development Institute – featured several examples of
new approaches to such assessments (see http://businessfightspoverty.ning.com).
The second constraint on partnerships is that they are hard to replicate. Successful
projects respond to specific local circumstances, and it is not easy to identify the
32
elements that worked well in one situation that are likely to be effective in another.
Some organizations, including the International Finance Corporation, have addressed
this issue by developing toolkits based on successful projects, such as the Mozlink
supplier development partnership in Mozambique.
Mining: Partnerships for Development TOOLKIT
33. 2
Six priority partnership
themes for socio-economic
programs
Summary Co-operation and Development (OECD) and
the World Bank. You are encouraged to
The Resource Endowment initiative (REi) discuss the six themes during interviews
studies of Chile, Ghana, Peru and Tanzania with stakeholders in module five (or during
have provided the Mining: Partnerships for interviews to supplement the module two
Development program with six “priority information if necessary) and to develop and
themes” around which partnerships between document operational definitions that suit
companies and others have demonstrable the location and make sense to the people
potential to improve the economic and social who live and work there.
development status of communities. The six
priority partnership themes are: The next section captures the relationships
between the six partnership themes and
1. mining and poverty reduction; the respective roles of potential partners.
2. mining and economic development: These relationships and the implicit interests
revenue management; and responsibilities of the partners lie at the
core of the framework of Mining: Partnerships
3. mining and economic development:
ANNEX
for Development.
regional development planning;
4. mining and economic development: local For clarity, the six themes are discussed
content; below one by one (even though they overlap
and most partnerships will explicitly address
5. mining and social investment; and two or more themes in the one program).
6. mining and disputes resolution.
The annex concludes with an example
The six themes will not only provide a partnership database organized around the
coherent structure for a country case study, six themes.
but also enable comparisons between
different country case studies. You are This annex should be read in conjunction
therefore encouraged to organize findings with modules two and five of the toolkit.
around these six themes.
There are, however, no universally agreed
definitions for these themes. In fact, different
interpretations may have, in part, led to
33
differences of opinion about mining’s actual
and potential economic and social effects.
What follows, therefore, is general guidance
on the issues that each theme covers. It has
been based on interpretations by such
organizations as the International Monetary
Fund (IMF), the Organisation for Economic
Mining: Partnerships for Development TOOLKIT
34. Six priority partnership
themes for socio-economic
programs
continued
Conceptualizing the six themes in the bullet points (‘Text here’). The central
box shows which of the six themes is being
ICMM has developed the diagram, shown described, for example ‘Mining and poverty
below, to help convey visually the roles and reduction’. Note that while partner
responsibilities of partner organizations for organizations have different roles and
each of the six themes. responsibilities, their efforts should all be
aligned on this central challenge – the four
This diagram has proved to be a useful and organizations are not working in isolation.
relatively simple way to represent
partnerships visually. The four outer boxes In order to show how this diagram works in
represent the four main partners involved in practice, this annex shows several illustrative
cross-sector collaboration. Indicative roles versions, drawing on ICMM’s work around
and responsibilities of the partners are listed the world.
Partnership diagram template
Companies: Donor agencies:
• Text here • Text here
• Text here • Text here
• Text here • Text here
• Text here • Text here
Mining and THEME
ANNEX 2
(e.g. poverty reduction)
Host governments: NGOs, civil society, communities:
34
• Text here • Text here
• Text here • Text here
• Text here • Text here
• Text here • Text here
Mining: Partnerships for Development TOOLKIT
35. Six priority partnership
themes for socio-economic
programs
continued
Mining and poverty reduction unemployed youth, indigenous communities,
or small-scale miners. As well, poverty
“Poverty reduction” refers to economic and reduction will usually be a consequence of
social policies and programs that promote strategic social investments in other areas,
growth and reduce poverty in a community, a such as health and education.
group of people, or a country. Such initiatives
will be generally aligned – where possible Large-scale mining often occurs in remote
(and where quantifiable) – with the UN’s regions of developing countries, where
Millennium Development Goals.25 They may subsistence agriculture may be the only
create jobs and micro-enterprises. Or they other form of economic activity. Partnerships
may increase access to basic goods and for agricultural improvement are therefore
services for vulnerable and economically an important element of the mining and
marginalized groups, such as women, poverty reduction agenda.
Mining and poverty reduction partnership diagram
This diagram (a working version) comes from a mapping of partnerships in the Lao PDR
Companies: International organizations:
• Implement community development • Provide technical assistance and capacity
plans building to government
• Undertake biennial household surveys • Establish guidelines and social safeguards
to understand mining’s impact on • Undertake local projects e.g. supporting
poverty reduction producers of traditional goods
Mining and
ANNEX 2
poverty reduction
Government: Civil society:
35
• Implement national growth and poverty • Undertake business and biodiversity
eradication strategy programs with local communities
25 www.un.org/millenniumgoals.
Mining: Partnerships for Development TOOLKIT
36. Six priority partnership
themes for socio-economic
programs
continued
Mining and economic development:
revenue management
flows. In principle, the case for action in this
area seems to be self-evident. In practice,
however, there are political sensitivities of
“Revenue management” is defined for the appearing to influence a host country’s
purposes of this toolkit as steps that decisions on public expenditure.
companies can take to ensure effective use
of revenue received from mining, particularly Nevertheless, it is useful to explore the
at a subnational level. This may involve issue during interviews with mining
support for government capacity building, companies and other stakeholders because,
technical assistance projects, or revenue either way, it is a widely held view that the
transparency projects. The Extractive issue of revenue management holds one of
Industries Transparency Initiative (EITI)26 is the keys to leveraging economic and social
yielding a growing body of data on revenue development from mineral wealth.
Mining and economic development: revenue management partnership diagram
This diagram is taken from a summary of findings from Chile, Ghana, Peru and Tanzania27
Companies: Donor agencies:
• Support Extractive Industries • Capacity building and transparent
Transparency Initiative (EITI) revenue management to subnational
levels
• Risk analysis extended to national and
subnational governance risk • Sound investment climate
• Support capacity building • Reform mineral legislation
Partnership for
ANNEX 2
enhanced revenue
management
Host governments: NGOs, civil society, communities:
36
• Adopt EITI • Hold governments to account for
mineral revenues
• Sound macro management
• Sequenced, decentralization of fiscal • Develop local capacity
authority to subnational level + public
administration reform
26 http://eiti.org. 27 ICMM Spotlight series 03: Ways Forward (2006).
Mining: Partnerships for Development TOOLKIT
37. Six priority partnership
themes for socio-economic
programs
continued
Mining and economic development:
regional development planning
The following diagram is taken from a
summary of findings from Chile, Ghana,
Peru and Tanzania. Each of the five boxes
“Regional development planning” can be can be further elaborated. The pull-out box
defined as public planning that supports in the diagram on the following page shows
longer-term economic diversification at a an elaboration of the central box, drawing
subnational level. It is relevant to mining on input from a global workshop on
companies for three reasons. First, mining partnerships for regional development
infrastructure investments can, in some planning, hosted by ICMM in October 2010.
circumstances, bring regional benefits if
they can be planned and designed
accordingly. Second, large mines can create
cultures of dependency, leading to a post-
closure economic void, unless efforts are
made to diversify the local and regional
economy. And third, the extension of mining
based on exploration success will benefit
from established infrastructure and
appropriate planning provisions over areas
known to be prospective for minerals.
Mining companies may engage in regional
development planning either as participants
in a government- or donor-led process or as
initiators of a collaborative, participatory and
ANNEX 2
community-owned process.
Mining: Partnerships for Development TOOLKIT 37